Cart Tire to Invest $700M in Cambodia for Enhanced Production and Export Expansion
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Cart Tire, a Chinese car tire manufacturer, is planning to increase its investment in Cambodia to approximately $700 million to boost production capacity and expand exports to international markets. The Council for the Development of Cambodia (CDC) reported that Cart Tire Co Ltd is establishing a factory in Svay Rieng province, making it the first tire manufacturer in Cambodia with an initial investment exceeding $350 million.
During a visit to Qingdao in China’s Shandong province, Sun Chanthol, the first vice-president of CDC, toured Sailun Group Co Ltd, the parent company of Cart Tire. In discussions with the company’s leaders, including CEO Yuan Zhongxue, Chanthol expressed gratitude for Sailun’s decision to invest in Cambodia and reaffirmed the country’s commitment to welcoming all investors. He emphasized the government’s goal of attracting more investments across various sectors in line with the Industrial Development Policy 2015-25.
Sailun conveyed its vision of continuing collaboration with Cambodia on rubber investments, processing plant construction, and the establishment of industrial parks within the Kingdom. The company aims to increase its capital investment over approximately 120 hectares of land to enhance exports to key markets such as the US, Canada, and South Korea.
CDC disclosed that Cart Tire has committed to purchasing 100% of local latex products in the production chain, starting with around 50,000 tonnes in the first year and gradually increasing to 150,000 tonnes over the subsequent five years. Chea Chandara, president of the Logistics and Supply Chain Business Association, emphasized that Cambodia’s political stability, strategic location, skilled labor force, and favorable investment regulations have contributed to its ability to attract direct investments.
Chandara highlighted the positive impact of such financing on national economic growth, generating employment opportunities, stimulating the domestic market, decreasing raw material imports, and increasing government revenue. He further expressed the potential benefits of Cart Tire producing and distributing locally, including the promotion of domestic products, the expansion of rubber tree cultivation, job creation for farmers and workers, and the possibility of meeting international quality standards.
At present, most rubber products used in Cambodia are imported from China, Thailand, Malaysia, and Vietnam. The General Department of Customs and Excise (GDCE) reported that from January to November 2023, the Kingdom exported 334,176 tonnes of latex, valued at $445.42 million. This reflected a year-on-year growth of 4% or an increase of 11,590 tonnes.
The investment by Cart Tire is expected to strengthen Cambodia’s manufacturing sector, provide economic opportunities, and contribute to the country’s overall development. The government’s strategic approach of attracting foreign investments aligns with its long-term vision of becoming a high-income country by leveraging advanced technology and resources.
Source: Phnompenh Post
